Estate of Coleman v. Commissioner
United States Tax Court
1. Decedent's three children purchased and at all times owned a life insurance policy on her life. Decedent paid all the premiums, a portion of which were concededly in contemplation of death.
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1. Decedent's three children purchased and at all times owned a life insurance policy on her life. Decedent paid all the premiums, a portion of which were concededly in contemplation of death. Held, no portion of the proceeds of the insurance is includable in her estate under sec. 2035, I.R.C. 1954, the amount includable being limited to the premiums paid in contemplation of death. 2. Decedent, as lessor of a lease, expiring in 2057, received a security deposit which was returnable only upon the expiration of the lease and then only if the lessee had performed all of the numerous obligations…
1Opinion of the Court
OPINION
Tannenwald, Judge:
Respondent has asserted a deficiency against petitioner of $20,334.75 in estate tax. The issues for decision are (1) whether the amount to be included in decedent’s gross estate under section 20351 should be a prorata portion of the proceeds of insurance on decedent’s life or the amount of the premiums conceded to have been paid by the decedent in contemplation of death and (2) whether a potential obligation of the decedent, as lessor, to refund a $36,000 security deposit under a lease constitutes a deductible claim under section 2053.
All of the facts have been…
2Cases cited19 opinions
- Chase National Bank v. United StatesSupreme Court of the United States · 1929
- Milliken v. United StatesSupreme Court of the United States · 1931
- Commissioner of Internal Revenue v. MaresiCourt of Appeals for the Second Circuit · 1946
- United States v. Manufacturers National Bank of DetroitSupreme Court of the United States · 1960
- Estate of Mary Redding Shedd, First National Bank of Arizona, Trustee v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1963
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3Cited by27 opinions
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- Estate of Leder v. CommissionerUnited States Tax Court · 1987
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